Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare Lodging (8 nights) Meals at local restaurants (8 days) Airport transportation Assume lodging/meals are the same amount for the business and personal portion of the trip ($293 per day for lodging and $270 per day for meals). If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare Lodging Meals Transportation $1,800 2,340 2,160 140 Total What amount may she deduct on her tax return? b. Would the tax treatment of Kim's deduction differ if she was an independent contractor?
Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare Lodging (8 nights) Meals at local restaurants (8 days) Airport transportation Assume lodging/meals are the same amount for the business and personal portion of the trip ($293 per day for lodging and $270 per day for meals). If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare Lodging Meals Transportation $1,800 2,340 2,160 140 Total What amount may she deduct on her tax return? b. Would the tax treatment of Kim's deduction differ if she was an independent contractor?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of
fashion shows and then spends three days sightseeing. Her expenses are as follows:
Airfare
Lodging (8 nights)
Meals at local restaurants (8 days)
Airport transportation
Assume lodging/meals are the same amount for the business and personal portion of the trip ($293 per day for lodging and
$270 per day for meals).
If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar.
a. Determine Kim's business expenses, presuming no reimbursement.
Airfare
Lodging
Meals
Transportation
$1,800
2,340
2,160
140
Total
What amount may she deduct on her tax return?
b. Would the tax treatment of Kim's deduction differ if she was an independent contractor?
Transcribed Image Text:b. Would the tax treatment of Kim's deduction differ if she was an independent contractor?
The deductible expenses would be $
and the expenses would be classified as
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